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Heightened Worries For GM, Ford, Chrysler

Credit default swaps, a market on Wall Street where corporate debt investors can buy protection against default, continue to take a harsher look at Chrysler, Ford and GM amid ongoing signs of a slowing economy and rapid gains in oil prices that are sapping demand for their products.

Ratings Actions & Outlooks

The latest ratings downgrades and outlooks from Moody's and S&P.

Dura's Long Run In Bankruptcy Is Over

As part of its exit, Dura has secured a $110 million revolving credit facility, a $50 million European first-lien term loan, and an $84 million US second-lien term loan.

Default Rates Up Sharply In 1H, S&P Says

Thirty-three companies defaulted in the first six months of 2008, surpassing the 22 defaults seen in 2007 and 30 defaults of 2006, according to a report by Standard & Poor's which expects 74 US companies to default over the next 12 months.

Ratings Actions & Outlooks

Some of the key ratings downgrades and revised outlooks from Moody's and S&P.

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Articles

Good Sports

Some of the most notable names in private equity, Steve Pagliuca and Tom Hicks, have made personal investments in sports franchises, but rarely have these deal makers pursued similar bets on behalf of the firms listed on their business cards. Institutional money, though, may be slowly creeping into ball parks, race tracks and even soccer fields.

A Package Deal

Hicks Acquisition Co., a Dallas special purpose acquisition company established by private equity financier Thomas Hicks, reached a definitive agreement to go public with Graham Packaging Holdings in a $3.2 billion transaction with The Blackstone Group, marking one of the largest transactions to be executed between a blank check entity and industrial company.

M&Ain't

By now, it's a well-worn tale, this one relayed by an investment banker: A private equity firm in the process of acquiring a company in a deal that would normally take six months will now spend a year hoping to get it done. But at least they're trying. Extended deal time frames and the falloff by private equity firms in buying companies have been the hallmark of the first half of this year, and while industry participants predict a slight uptick, overall not much will change in the remaining six months of the year. Regardless, Wall Street banks, which have laid off thousands of bankers due to the market slowdown, will continue to feel pressure in their M&A business the remainder of the year.

US Auto Wreck?

GM and Ford share prices are trading at 52-week lows and investors have found that bonds from auto makers are tough to sell. At the same time, credit default swaps for both companies are at levels suggesting that they will file for bankruptcy within the next five years.

Standing Out

In IDD's latest roundtable, a group of seasoned buyout market dealmakers convened in the magazine's New York offices to explore various aspects of the M&A market and the topic of buyer differentiation. Transaction structures, seller expectations, deal sourcing, private equity firm marketing and the value of operations talent were issues that took center stage in the discussion attended by Benesch, Friedlander, Coplan & Aronoff executive chairman James Hill, Red Diamond Capital managing director Bret Russell, Lazard Middle Market co-chief executive David Solomon, Altus Capital Partners senior partner Elizabeth Burgess and Wynnchurch Capital managing director Charles 'Chip' Grace.

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